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International Trade Newsletter – March 2019

INTERNATIONAL TRADE AND CUSTOMS NEWSLETTER

COMMENTS ON THE MOST RELEVANT REGULATIONS

Order maintaining antidumping rights for footwear imports from People’s Republic of China is confirmed.

On March 14, 2019, the Order No. 283-2018/SDC-INDECOPI was published. By virtue thereof, the Specialized Division on Defense of Free Competition of the Peruvian Administrative Court of Appeals for Free Competition and Intellectual Property Matters of the National Institute for the Defense of Free Competition and Protection of Intellectual Property (INDECOPI) confirmed the Order No. 209-2017-CDB-INDECOPI issued by its Commission on Dumping, Subsidies and Elimination of Non-Tariff Trade Barriers.

Pursuant to the Order thereof, antidumping rights were decided to be remained in effect for a 5-year additional term for imports of any variety of footwear (including flip-flops and sandals) having a top part made of rubber or plastic and natural leather, and being its country of origin People’s Republic of China.

Said antidumping rights were given in compliance with the Order No. 001-2000/CDS-INDECOPI, and have been applied under extension by the INDECOPI Commission on Dumping, Subsidies and Elimination of Non-Tariff Trade Barriers.

STATEMENTS MADE BY THE AUTHORITY

The Tax Court has established the criteria in terms of prescription period for Customs actions to demand the payment of taxes and penalties.

The Tax Court has recently issued orders, pursuant to an order of mandatory compliance issued by this entity, establishing the following criteria in terms of the prescription period for Customs actions to demand the payment of taxes and penalties:

  • The prescription period to determine customs tax debt, impose sanctions, and collect taxes and penalties started to be calculated simultaneously and took place at the same time.
  • All powers thereby is subject to differentiated grounds of interruption and suspension; therefore, even though the calculation of the prescription period started at the same time, this shall not be interrupted or suspended necessarily at the same time.
  • It cannot be considered that the notice of documents determining a control process commencement would interrupt the prescription period for Customs actions to demand the payment of taxes and penalties.

Upon these considerations and regarding the payment of taxes and penalties determined until the effective day of the Legislative Order No. 1433 (being on September 17, 2018), it may occur that the powers of the Customs Service to collect said taxes and/or penalties will be prescribed.

OTHER CURRENT NEWS

Negotiations to optimize the FTA with China

The Ministry of Foreign Trade and Tourism (MINCETUR) has informed that negotiations with the Government of the People’s Republic of China continue up to date in order to optimize and extend the scope of the FTA entered into by both countries.

As it has become known, terms and conditions related to these chapters: Rules of Origin, Customs Matters, Trade in Services, Investment, Intellectual Property, Sanitary and Phytosanitary Measures are being negotiated.

In addition, it will be sought to include new chapters in said FTA, such as: Competence and E-Commerce. By implementing these new provisions, especially on E-Commerce, it is expected that trade between both countries would be expanded.

Adequacy rules of the General Customs Act and Customs Violations and Sanction Table

Pursuant to Legislative Order No. 1433, having the General Customs Act been amended thereby, Supreme Executive Orders should be issued until May 17, 2019 regarding:

  • The adequacy of these amendments to the Regulations of the General Customs Act approved by Supreme Executive Order No. 010-2009-EF; and
  • The adequacy of the Violations and Sanction Table applicable to violations pursuant to the General Customs Act approved by Supreme Executive Order No. 031-2009-EF.

As the deadline of such term is close, it is convenient that taxpayers could present proposals and/or suggestions to improve the scope and content of these provisions.

RECOMMENDATION

By virtue of Supreme Executive Order No. 018-2018-EF published on February 6, 2018, “Frequent Importer” category is instructed to set aside as of July 1, 2019.

As we know, due to the widely use of this category by import sector, observations (“reasonable doubts”) by the different import clearance offices – main cause of delays and generation of cost overruns in these operations – were being avoided.

Thus, declared value review were being performed through later control process on a programmatic and organized basis for both importers and the Customs Service itself.

Considering that the deadline to set aside the “Frequent Importer” category is close and so importers being under this category will lose the aforementioned benefits, it would be advisable to evaluate the commencement of the Authorized Economic Operator (AEO) Certification process.

Importers having this Certification not only may enjoy the same benefits as a “Frequent Importer”, but also may access to another kind of benefits like global nominal guarantees, shorter formalities terms, etc. that will impact directly on the efficiency of their import operations and cost reduction.

FOREIGN TRADE AND CUSTOMS TEAM

If you wish, you can contact the lawyers of the Foreign Trade and Customs department.

This bulletin contains the objective description of legal provisions and news related to foreign trade and customs matters. It does not contain the opinion of Rodrigo, Elías & Medrano Law Firm on the matter, thus it cannot be considered as a source of interpretation or response to consultations.